Re: Need faith in L/O’s… - Posted by Jim FL
Posted by Jim FL on October 12, 2003 at 21:02:53:
No offense, but if the property has $5k in equity only, I certainly hope it has a value of less than $20k or so.
This is why we all tell folks due diligence and buying right is so important in this business.
Your first duty for due diligence is to verify numbers.
What is a house worth?
What will it rent for?
Sounds to me like you agreed to pay a seller higher than market rent, and an option price at or very near market value.
What is the value of the home?
$5k in “Equity” really is not much money at all.
Heck, if the house only has $5k in equity, shooting to get $3-4k in cash now, seems a like your taking your profit out now.
What is your tenant/buyers get a loan before 12 months?
Will the home appreciate enough to get you paid more?
Just sounds too skinny for me.
Tell us more, and maybe we can help.
Next time, buy for less than value.
Remember the old adage, “Make your money when you buy” and live by it!
Take care and good luck,
P.S. one week of marketing is really not nearly enough to gauge a response by the way.